Bidding Strategies For Google Ads

Various bidding strategies depend on your goals for running the ad. Choosing the appropriate strategy and executing it is a critical decision. You can drive your ad cost down if you choose the right bidding strategy and implement it perfectly.
However, to do so, you need to know thoroughly about the different strategies, tricks, and tips for execution. Otherwise, you are just wasting your entire budget on a few clicks, which will not benefit your business.

A study shows changing the bidding strategy can lead to increased conversion of up to 142.86%. Many bidding strategies are categorized into two main sections, automated and manual.



This article will walk you through them and help you to choose the best according to your requirement.

Manual CPC

The manual CPC is a manually controlled bid strategy where you can customize the CPC (cost-per-click) per keyword. This strategy will give you full control over your expense, as you can drastically decrease the ad cost.
However, you will lose too much market share too soon. You can use this strategy if you have a limited budget and specific target keywords.

Maximize Conversions

It’s an automated bidding strategy, this bid sets on previous campaign success and auction data from the retailer’s rivals. The strategy works solely for maximum conversions for the least amount of money.
With the Maximize Conversions strategy, you are able to set a daily budget for your google ads. After confirming this bidding strategy, google will spend its whole daily budget to gain as many conversions as possible.

Enhanced CPC (cost-per-click)

It’s also an automated bidding strategy; by choosing this strategy, google can control your bids based on the probability of the conversion. Suppose google thinks the conversion is probable. It will increase the maximum CPC bid by up to 10% and vice versa. In two conditions, you are recommended to use this bidding strategy; one is if you have a limited budget, and the other one is

Target Impression Share

This bidding strategy focuses on showing your ad on top of the designated page. Target impression share strategy is extremely effective for brand visibility. Google ads will show your brand name at the top of the page to maximize your company’s visibility.

Target CPA

CPA (Conversions per Acquisition) is a smart method that automatically sets bids to get as many conversions as possible. Choosing a Target CPA (target cost-per-actions) will enable you to select an average cost per conversion.
Suppose a customer searches for your product or service, then google ads use your target CPA to calculate the optimal bid based on the likelihood of the auction converting.
However, sometimes a few conversions may cost less, and some may cost more than your target CPA. But overall, google manages to maintain your target CPA. If you want to spend a specific amount for your conversions, then you should opt for this strategy.

CPV Bidding

CPV (Cost-Per-View) bidding is the most effective way to calculate the price you’ll spend for TrueView. This strategy works for your video advertising in Google Ads. You can use this method if you want to generate quality views on your YouTube Ads.

CPI (Cost-per-Install)

Cost Per Install is another strategy that you can choose in google ads. This bidding strategy is used for the universal APP Campaign to get more app installs. However, this bidding strategy is only available for mobile app campaigns and is limited to mobiles only.
So if you want to promote your mobile apps, you can select this strategy.

Maximize Conversion Value Bidding

This strategy became popular and earned its fame due to its specialized characteristics. It allows merchants to optimize ads based on different parameters. Including sales revenue or profit margins. Google will generate bids based on these factors and maximize possible investment returns.
This strategy is better for working on e-commerce or transactional websites. Basically, which has a payment gateway on its website, so if you want to promote your ecommerce site, you can use this strategy on Google Ads.

Target ROAS

Target Return On Ad Spend (ROAS) is an excellent strategy to get your desired return on investment (ROI). The process is complex, but luckily you do not have to do it alone.
Google automatically does it for you; you must select the goal or ambition object after choosing the bid. Also, you need to choose the return on investment target, which will affect the number of conversions you receive.
Ecommerce and any transactional website can use this strategy.

Maximize Clicks

If you want to increase the number of visitors to your website within your daily budget, you can use the Maximize Clicks strategy. Google will automatically measure bids to help you enhance and increase clicks while staying within your budget. There are two ways this strategy works. Like you can have a standard strategy for a single campaign or a portfolio bid strategy. You can use this strategy in Google Ads if you want quality traffic.

Summing Up

You can use these strategies to maximize your reach and conversions within your budget. You can learn more about bidding strategies on Emeritus India.

Frequently Asked Questions

What is Google smart bidding?

Google smart bidding refers to bid strategies that leverage ML or machine learning to optimize for conversion value. The most common smart bidding strategies are target CPA, Target ROAS, Maximize conversions, and Maximize conversion value.

What are bidding strategies in google ads?

A bidding strategy is where you can set an average for how much you are willing to pay for every thousand impressions. An effective strategy will help your campaign’s unique reach, and this will be cost-effective. Also, you can minimize your expense by using an exclusive bidding strategy.

What are the different types of bidding strategies?

There are seven types of automated bidding strategies available. Such as,

  • Maximize clicks
  • Target search page location
  • Target outranking share
  • Target cost-per-acquisition (CPA)
  • Enhanced cost-per-click (ECPC)
  • Target on ad spend (ROAS)
  • Maximize conversions

According to the goal and budget, you can customize your bidding strategies.

How to choose the right bid strategy?

Generally, advertisers that switch their bid strategy to a target ROAS can see 14% more conversion value from the target CPA. However, the expense stays the same on ads. You need to set target ROAS using the maximize conversion value strategy if your goal is to achieve the desired ROAS across your portfolio of campaigns.

What is the target CPA bid strategy?

Target CPA (cost-per-action) bidding refers to the ‘smart bidding strategy’ that sets bids for you to get as many customer actions (conversions) as possible. If you set a target CPA, you fixed the average cost that you would like to pay per conversion. In this manner, you can check on your budget and control the expense.

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